GAP INC. CLIMATE POLICY  

GAP INC. IS COMMITTED TO REDUCING OUR IMPACT ON CLIMATE CHANGE   

Climate change is a global challenge that transcends boundaries, affecting people and communities everywhere. We believe strongly in the science of climate change, and that it is a fundamental environmental, economic and human rights issue. The consequences of a changing climate are profound and wide-ranging; from biodiversity and water resources,  public health and agricultural impacts, to increased risk to our business in the short and long term. Addressing climate change benefits our business, making us more resilient and efficient, while enhancing our connection with customers, employees and other stakeholders.   

AMBITIOUS GHG REDUCTIONS REQUIRE INNOVATION AND RENEWABLE ENERGY ALTERNATIVES   

We have demonstrated our commitment to addressing climate change over time by setting, and achieving, increasingly ambitious greenhouse gas (GHG) emissions reduction goals. In 2016, we established a target to reduce absolute Scope 1 and Scope 2 GHG emissions from our owned and operated facilities by 50 percent globally by 2020 compared to 2015 emissions levels. The achievement of this commitment led to additional investment in operational efficiency, and the implementation of onsite and offsite renewable energy projects to meet our goal.  

In 2020, we strengthened our climate commitments  by setting  Science Based Targets to address our emissions footprint. These were revised in 2024 to increase our ambition to:

• Reduce Scope 3 supply chain emissions by 32.5% by 2030 from a 2017 baseline
• Achieve 100% renewable energy in our owned and operated facilities by 2030
• Reducing our Scope 1 & 2 emissions 90% from a 2017 baseline by 2030
• Achieve net zero emissions by 2050.  

These goals were formally approved by the Science Based Target initiative, an organization that brings together over 300 companies, CDP, the World Resources Initiative (WRI), the World Wildlife Fund (WWF), and the UN Global Compact to align corporate climate goal setting with the latest science and research.  

https://sciencebasedtargets.org/companies-taking-action/ 

INDUSTRY COLLABORATION IS NECESSARY TO MAKE A MEANINGFUL IMPACT  

Addressing climate change requires us to act not only on our own, but also alongside others to bring about the greatest possible change. We are working to address emissions beyond our retail operations by partnering with our suppliers to improve sustainability and reduce overall environmental impact, including energy and water use.  

Leveraging Cascale’s (formerly the Sustainable Apparel Coalition’s) Higg Index, we are collecting and analyzing data within our global supply chain and actively working with our suppliers to adopt more sustainable manufacturing practices in order to reduce their environmental impact, in both water and GHG emissions. Gap Inc. is also a founding member of the Apparel Impact Institute focused on implementing supply chain environmental improvement programs at scale. 

Since 2007, we have actively engaged with Ceres, a leading nonprofit organization dedicated to mobilizing the business community to build a sustainable economy. We are also a member of Ceres’ Business for Innovative Climate and Energy Policy (BICEP) coalition, a group of more than 55 public and private companies seeking to help pass meaningful energy and climate change legislation. As a member of BICEP, we are committed to promoting energy efficiency and renewable energy; increasing investment in a clean energy economy; and supporting climate change adaptation, technology transfer and forest preservation. 

GOVERNANCE AND IMPLEMENTATION OF THIS POLICY   

Executive oversight and responsibility for the implementation of this policy rests with Chief Supply Chain & Transformation Officer Sally Gilligan, Global Sustainability leaders and is approved by our CEO. Progress is reported quarterly to the Gap Inc. Board of Directors Governance & Sustainability Committee. 

Implementation of this policy is driven by Gap Inc.’s Global Sustainability department, in partnership with functional leaders in our Brands, Supply Chain, Legal, Procurement, Real Estate, Global Transportation and Store Operations.

PFAS POLICY  

We aim to eliminate the discharge of hazardous chemicals within our supply chain to reduce our environmental impact and improve access to clean, safe water in the communities where our suppliers, factories, and mills operate.    

Long-chain perfluoroalkyl and polyfluoroalkyl chemicals (PFC) - also referred to as long-chain per- and polyfluoroalkyl substances (PFAS) - are known to be hazardous to the environment due to their persistence and there is evidence that certain long-chain PFAS are toxic and harmful to human health. Since 2016, Gap Inc. has prohibited the use of long-chain PFAS in the production of Gap Inc. products (defined to include perfluoroalkyl sulfonates (PFAS) with carbon chain lengths C6 and higher (e.g., perfluorooctane sulfonate [PFOS] and related substances) and perfluoroalkyl carboxylic acids (PFCA) with carbon chain lengths C8 and higher (e.g., perfluorooctanoic acid [PFOA] and related substances). Gap Inc. has adopted the ZDHC Manufacturing Restricted Substances List (MRSL), which currently prohibits intentional use of long-chain PFAS. 

Due to increasing awareness of potential environmental and ecological harm from short-chain PFAS, Gap Inc. is committed to eliminate all PFAS-based DWR, stain repellent, and other finishes from our supply chain by January 2023 without jeopardizing product performance.    

PHASE-OUT OF PFAS WILL REQUIRE INNOVATION AND COLLABORATION  

Fabric finishes that are not based on PFAS have become more widely available in recent years, and the performance and durability of these finishes are improving. However, conversion of a PFAS-based finish to an alternative, non-PFAS-based finish almost always requires tradeoffs in performance, durability, and/or aesthetics. Gap Inc. is committed to partnering with our suppliers and other stakeholders to advance innovative, non-PFAS-based solutions for water repellency, stain protection, and other effects historically achieved using PFAS.   

Gap Inc. has identified the primary uses of short-chain PFAS-based finishes in our branded apparel and accessories. But we acknowledge there may be other uses of short-chain PFAS in our supply chain. We are working to communicate our intent to eliminate PFAS to our supply chain; and we are committed to working with our suppliers to identify alternatives and solutions that do not require use of PFAS.   

Gap Inc. will continue to engage with ZDHC, the AFIRM Group, and other industry initiatives to advance responsible chemicals management practices in the supply chain and to eliminate chemicals of concern from the apparel and footwear value chain.   

GOVERNANCE AND IMPLEMENTATION OF THIS POLICY   

Executive oversight and responsibility for the implementation of this policy rests with our Chief Growth Transformation Officer Sally Gilligan, ESG/Global Sustainability leaders and is approved by our CEO. Progress is reported annually to the Gap Inc. Board of Directors Governance & Sustainability Committee and quarterly to the Gap Inc. Foundation and Sustainability Board.    

Implementation of this policy is driven by Gap Inc.’s Global Sustainability department and a cross-functional working group that includes representatives from all Gap Inc. brands, technical experts across functional areas such as Supply Chain.

WOOD-DERIVED FABRIC POLICY 

GAP INC. IS DEEPLY COMMITTED TO THE ETHICAL SOURCING OF OUR PRODUCTS AND THE USE OF SUSTAINABLE RAW MATERIALS.  

We believe the use of sustainable materials will help to reduce our impact on the environment and help to preserve natural resources for future generations. Gap Inc. is against the use of ancient and endangered, high conservation and high carbon-value forest areas to make cellulose-based textiles, including but not limited to rayon, viscose, lyocell, and modal.  

To achieve this, we are committed to:  

• By 2020, eliminating the use of wood-derived fibers made of dissolving pulp from ancient and endangered forest areas such as the Canadian and Russian Boreal Forests; coastal temperate rainforests of the Pacific Northwest and Chile; tropical forests and peatlands of Indonesia, the Amazon, and West Africa.  

• Avoiding the use of wood-derived fibers logged illegally, sourced from tree farms established after 1994 through the conversion or simplification of natural forests; or from areas being logged in contravention of indigenous peoples’ rights; or without obtaining Free, Prior and Informed Consent of local and indigenous communities, or from controversial suppliers.  

• Giving preference to suppliers that use effective strategies to actively reduce their greenhouse gas footprint, and to fabric sources from responsibly managed forests certified to the Forest Stewardship Council (FSC) certification system.  

• Encouraging suppliers to disengage from destroying or fragmenting forests, and engaging suppliers to cease operations in endangered species habitat or high carbon-value forest areas.  

• Supporting collaborative conservation solutions, such as in the Great Bear Rainforest.  

• Encouraging the development and adoption of fiber sources that reduce environmental and social impacts where possible.  

• Partnering with not-for-profit organization, Canopy, which collaborates with brands and retailers to ensure a supply chain free of fabrics made from ancient and endangered forests.

ANIMAL-DERIVED MATERIALS POLICY  

Gap Inc. is deeply committed to the ethical sourcing of our products, which includes the humane treatment of animals. Animal-derived materials are defined as any materials produced from living creatures used in the creation of products. Our aim is that all animal-derived materials will meet standards of humane care, represented in the five freedoms. The Five Freedoms include: 1. Freedom from Hunger and Thirst. 2. Freedom from Discomfort. 3. Freedom from Pain, Injury or Disease. 4. Freedom to Express Normal Behavior. 5. Freedom from Fear and Distress. 

We expect that all of our suppliers source products in an ethical and responsible way, including documentation and verification of animal welfare standards. We expect our suppliers to use only skins, down and feathers that come from animals bred for food. We prioritize animal-derived materials that are certified to independent, international standards that incorporate environmental standards which reduce the impact on land, biodiversity and water resources.   

For Gap Inc. brands, licensees and third party branded products, we do not allow animal testing of personal care products or their ingredients.  

The Animal-Derived Materials Policy specifically:

• Opposes mulesing and does not allow wool from mulesed sheep
• Prohibits use of angora and mohair
• Instructs that hides (including hair-on) come from animals raised for food where the hide is otherwise a waste product. This includes leather, suede, and shearling
• Prohibits feathers and down plucked from live birds. Any feathers used must be from birds raised for food. This covers goose and duck down and excludes specialty plumes
• Prohibits hides from animals primarily raised for apparel, including fur, exotic skins, and karakul lamb
• Instructs that miscellaneous animal-derived trims and accessories, such as horn used for buttons and closures, are sourced only as a byproduct of animals bred for food
• Gap Inc. prohibits use of materials from vulnerable or endangered species.
  • With reference to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES – https://cites.org/eng): Suppliers shall not use materials from species listed under the most current versions of CITES Appendices I, II, or III.
  • With reference to the International Union for Conservation of Nature (IUCN - https://www.iucnredlist.org/): Suppliers shall not use materials from species listed as Critically Endangered, Endangered, or Vulnerable on the IUCN Red List of Threatened Species.  

The Animal-Derived Materials Policy governs all our brands, including Athleta, Banana Republic, Gap, and Old Navy.